The CalHFA Dream For All Program has become one of California’s most talked-about down payment assistance programs. Unlike traditional second mortgages, Dream For All provides eligible first-time homebuyers with assistance for their down payment in exchange for a share of the home’s future appreciation.
For many buyers in the Temecula Valley, the program can increase purchasing power by eliminating mortgage insurance and reducing the monthly payment.
What Is Dream For All?
Dream For All combines a 30-year fixed-rate Conventional first mortgage with a shared appreciation down payment assistance loan provided through CalHFA.
Interest rates are established by CalHFA, not individual lenders, meaning participating lenders generally offer the same first mortgage pricing for the program.
The assistance loan can provide up to 20% of the purchase price (subject to current program limits and voucher availability), allowing qualified buyers to finance without monthly mortgage insurance in many cases because the first mortgage remains at or below an 80% loan-to-value ratio.
First-Time Homebuyer & Counseling Requirement
To qualify, borrowers must generally be considered first-time homebuyers, meaning they have not owned and occupied a principal residence during the previous three years.
The home must also become the borrower’s primary residence.
Counseling – There are typically two types of counseling involved in this process. An 8-Hour on-line counseling course and a 1-Hour one-on-one live HUD Counseling too.
Credit and Debt Ratio Requirements
Dream For All has stricter qualifying standards than many other CalHFA programs.
Typical requirements include:
- Minimum 680 FICO® score
- Maximum 45% debt-to-income ratio for borrowers with credit scores below 700.
- Up to 50% debt-to-income ratio may be permitted for borrowers with credit scores of 700 or higher, provided the loan receives an eligible Desktop Underwriter (DU) approval and all program guidelines are met.
Meeting the minimum requirements does not guarantee approval, as income, assets, and underwriting must also satisfy CalHFA and Conventional guidelines.
How the 2026 Voucher Process Works
Unlike traditional CalHFA assistance programs, Dream For All uses a voucher reservation system.
Eligible buyers first apply for a voucher during the state’s application period. If selected, the voucher reserves the opportunity to use Dream For All funding.
Once a voucher is awarded, buyers generally have a limited period—typically 90 days under recent program structures—to identify a home, enter into a purchase contract, and close the transaction before the voucher expires. Program timelines are subject to change with each funding cycle. In some cases, an additional 90 days can be applied for. I caution my clients to stick to the first 90 days period vs relying on an extension. There are no guarantees of an extension.
Because vouchers are awarded through a limited statewide allocation, receiving one is highly competitive. In 2025, 6-7% of those that applied – received a voucher.
No Monthly Mortgage Insurance
One of Dream For All’s biggest advantages is that borrowers can often avoid monthly private mortgage insurance (PMI).
Since the shared appreciation loan provides up to 20% toward the purchase, the first mortgage can remain at 80% of the home’s value, eliminating the need for monthly PMI in many transactions.
The result is a lower monthly housing payment and, in many cases, greater purchasing power than a comparable low-down-payment Conventional loan with mortgage insurance.
How Repayment Works
Dream For All assistance is not a grant.
There are no monthly payments on the assistance loan. Instead, repayment occurs when the home is sold, refinanced, transferred, or the first mortgage is paid off.
At that time, the homeowner repays:
- The original assistance amount, plus
- A predetermined share of the home’s appreciation, as outlined in the program agreement. This is typically 20% of the home appreciation at closing of the sale.
Because appreciation sharing affects long-term equity, borrowers should carefully review the repayment terms before deciding whether Dream For All is the right fit.
Final Thoughts
CalHFA Dream For All offers an innovative path to homeownership by helping first-time buyers overcome one of the biggest obstacles—saving for a down payment. In some cases, the equity-sharing can be looked at with controversy, but for the right folks, this can be a rewarding product. With a 30-year Fixed Conventional Mortgage, no monthly mortgage insurance in many cases, and assistance of up to 20% of the purchase price, the program can make homeownership more attainable in the Temecula Valley by allowing approved borrowers up to $1,000+/month savings.
Because voucher availability, income limits, and program guidelines can change from year to year, working with a CalHFA-approved lender is the best way to determine whether Dream For All aligns with your homeownership goals.
